The photo shows a simplelooking man carrying a wheelbarrow full of piles of cash: “The health insurance user will pay his monthly payment for January 2024,” reads the caption in one of the many memes trying to digest the new this Friday (22). ) in Argentina.
Several health insurance operators in the country have started sending notices to their customers warning that monthly fees will suddenly increase by about 40% next month, citing the measures announced by new President Javier Milei last Wednesday (20). ) announced regulation on extraordinary urgency.
The package, which repealed or changed more than 300 rules designed to deregulate the country's economy, eliminated price controls in private health care and equated socalled “prepaid medicine” with “social work,” meaning there will no longer be any mediation by unions Sector.
Around 61% of Argentina's population uses private medicine, another 36% only have access to the public system and 3% have state plans, according to the 2022 census. The percentage is much higher than in Brazil, where only 25% have health care have plans.
Milei's decree does not take effect until next Friday (29th) and, to be final, must avoid a blockade by Congress next month. Nevertheless, companies have already agreed on increases to compensate for the inflation losses of recent years.
“Costs went up while monthly fee adjustments went up, causing a huge deterioration,” said Claudio Belocopitt, president of the Argentine Health Union (UAS) and owner of Swiss Medical, one of the country's largest operators, to Radio con Vos.
The companies argue that prices have been lagging for about 11 years, particularly in the last two years when inflation rose sharply. In the last three months, during the election campaign, the government of Alberto Fernández also froze prices for three months.
According to estimates by the Civil Association of Integrated Medical Activities (Acami), from December 2019 to October this year, price indices in general increased by 780%, while monthly tariff fees increased by 510% and the cost of providing healthcare services increased by 1,157%.
Belocopitt argues that the increase is not due to the decree itself: “It would happen anyway because the formula itself is in force.” [assinada pelo governo de Alberto Fernández] “I also wanted to place this increase at the end,” he told broadcaster A24.
However, the operators' own communications to customers explain that the increase was “made possible” or “in accordance with” the regulation, “with the aim of covering the costs that have arisen mainly in recent months due to several factors “. .
In addition to inflation, companies such as Swiss Medical, Omint and Hominis cite salary adjustments and the increase in the official dollar promoted by Milei last month, which made imported inputs such as medicines and prosthetics, which were already in short supply, even more expensive. through restrictions.
The prices were controlled by Fernández's management. Monthly charges were capped at a health care cost index published by the Superintendency of Health Services. The cap set for January was around 6%, but once issued it will depend on each company's decision.
The only rule imposed by Mileis management is that for plans regulated by age groups, the difference between the first and last groups can be up to three times.
Insurance companies have been demanding this green light for a long time. Now they have to deal with the dilemma of compensating costs while running the risk of losing customers, which is already to be expected in an environment where Argentines are becoming increasingly poor.
The end of controls, the devaluation of the peso and the increase in import and export taxes by Milei led to a wave of price cuts in companies and services in recent weeks, causing the population's purchasing power to shrink even further, this time suddenly.
The measures are part of the president's radical plan to solve Argentina's economic crisis, where inflation is topping 160% annually. He has also announced drastic cuts in government spending, including halting public works and cutting energy and transport subsidies.
“I warn you that there is more to come,” said the President this Thursday (21). He wants to send a large legislative package to Congress in the coming days, which will include, among other things, a change in the calculation of pensions and the expansion of the income tax. They also have to negotiate with parliamentarians to maintain the decree. (JÚLIA BARBON/FOLHAPRESS)